Non-expiring pre-approval? How do you do it?

Question

As you will be able to tell by my question, I’m new to this and looking to start investing.

I have the funds for down payment and have the credit for a loan. But if I don’t know when I’m going to find a deal to finance, how can I have a pre-approval I could use at any moment if they expire? Otherwise, I lose the deal because someone else has their pre-approval available at the time of the offer.

For my first investment I’m not looking to do owner financing or anything like that. Unfortunately, I haven’t been able to find a mentor and I’m trying to keep things “as simple as possible.”

Thank you in advance for your help!!!

Lisa Jones · Answer

@Thomas Enright

Thanks for the information!

Thomas Enright · Answer

There's definitely a lot of mortgage brokers or lenders that will provide pre-approvals for up to 90 days which should be plenty but then it usually super simple to call and have them extend it if you get to the end of that 90 days. The probably won't do one that doesn't expire because you financial position is constantly changing but having an active pre-approval on hand usually isn't very hard.

David M. · Answer

@Lisa Jones

By simply having your pre-approval it means your initial paperwork and credit report in on hand and reviewed by your loan officer.  That is, your file is created.  Even if your pre-approval expires, you don’t have to renew it for the sake of renewing it.  When you find something, you should be going back to your lender anyway.  He or she can update your file then...

I wouldn’t get hung up on the pre-approval expiration.  That is to protect the lender since anything can happen to you (eg your credit score may crash, you financials may change, you may change jobs, etc).

Besides, expiration is usually 2-3 months.  In the extreme, if you have to get your credit pulled every few months it shouldn’t hurt your credit score by much at all.

Make sense?

Lisa Jones · Answer

@David M.

Yes, it makes sense. Thank you!